ABSTRACT

Horticulture crops in India occupy a prominent position in the cropping pattern and contribute a significant source of income to farmers. Studies have explored the value chain of mango production in India in regional contexts, analyzing the cost and profitability of mango production. Each crop has a unique supply chain based on the product’s attributes, seasonality and market access. This chapter explores role of various market channels and stakeholders in the mango value chain. Specifically, it analyzes the various modes of contracting and choices made by farmers to minimize transaction costs and increase revenues in the state of Karnataka in India. We find that most farmers prefer to sell through the pre-harvest contracting system that can be at the pre-flowering or post-flowering stage. The pre-harvest contractors and local traders, in turn, sell the produce at the government-regulated markets to different wholesalers, retailers and processors. Some farmers also sell directly at the government-regulated agricultural markets and retail markets. Many factors influence the decision of farmers to prefer a particular value chain. While there are higher risks of crop failure during the pre-flowering stage, some contractors buy the harvest at the pre-flowering stage as well. This chapter answers some of the issues raised such as the type of risks at pre- and post-flowering stages, which bear the risk and socio-economic characterisitics of risk-bearing farmers.